"There will be a time of digesting that stimulus," he said. "There is a little bit of investors thinking 'let's just pause here' and the market is pretty much flat on the day."
With $20b of the Covid fund yet to be allocated, the full impact remains to be seen.
Adding to the caution were global concerns about new virus outbreaks in South Korea and Texas.
"Markets are wary about containment and this is a reminder we have a way to go," he said.
Tourism Holdings led the market lower, falling 9.4 per cent to $1.44. Solly said investors may have been hoping for more support for the tourism industry in yesterday's budget announcement.
Air New Zealand was also weaker today, dropping 2 per cent to $1.22. Auckland International Airport rose 0.2 per cent to $5.70.
Meridian Energy declined 2.1 per cent to $4.61 and Contact Energy fell 1.9 per cent to $6.11.
Both released data today showing national electricity demand in April fell by 13.7 per cent compared to last year. However, demand has lifted strongly since the lockdown ended, with demand in the week ending May 10 being above the five-year average.
Fisher & Paykel Healthcare fell 1.9 per cent to $30.50.
Freightways posted the day's biggest gain, rising 5.2 per cent to $7.25 off yesterday's announcement they had secured new banking facilities coupled with activity picking up as the economy resumes.
Vista Group International rose 3.6 per cent to $7.25, benefiting from its customers, cinema operators, returning to work this week throughout Australasia.
Similarly, SkyCity Entertainment Group increased 2.5 per cent to $2.46 as investors anticipated activity getting underway again.
Pushpay Holdings continued to rally, up 2.5 per cent at $7.02 on quieter volumes today, but still garnering support from the market.
Outside the benchmark index, Michael Hill International fell 2.8 per cent to 35 cents after it announced it would not reopen nine of its 300 stores, with more closures likely.
